I agree technology may represent a new economic phase -- but startups are just the way they're introduced. And it has nothing to do with productivity and everything to do with uniqueness of vision. If big companies did more things like Google's 20% project, you'd have the same effect.

Also, I think you ignored that VC is becoming less and less important. And as it gets less important, the big funding hubs will become less important. I see a future of micro-equity and the big hits coming out of everywhere.

Also, the hubs have a horrible self-delusional feedback loop. Once you get an entire environment that thinks the same way, these feedback loops are inevitable and you spiral into silliness, e.g. Twitter.